Government sets up panel under Shome to review tax laws

The government has set up a high-level panel under chairmanship of Parthasarathi Shome to review tax laws.

NEW DELHI: The government has set up a high-level panel under chairmanship of Parthasarathi Shome to review tax laws and suggest ways for a stable and non-adversarial tax administration.

The seven-member Tax Administration Reform Commission (TARC) will have 18 months to suggest various measures, including appropriate organisational structure for tax governance, an official statement said. Earlier this month, the Cabinet had approved setting up of TARC.

The terms of reference of the commission include a review of the existing mechanism of dispute resolution and methods to widen tax base. Further the TARC would recommend measures to strengthen inter-agency information sharing between the Central Board of Direct Taxes, Central Board of Excise and Customs, Financial Intelligence Unit, Enforcement Directorate and also with the banking and financial sector. It would also look at mechanism for grievance redressal, timely disbursal of tax refunds and duty drawbacks.

"An emerging economy must have a tax system that reflects best global practices. I propose to set up a TARC to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system," finance minister P Chidambaram had said in his budget speech.